Post Utme Esut 2022 Economics Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Esut Economics examination.

Post Utme Esut 2022 Economics Objective / Multiple Choice
Question 36 POST_UTME_ESUT • 2022 • ECONOMICS • objective

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing 100 units, what is the opportunity \cost of producing one more unit?

Answer Options

A. The opportunity \cost is the difference between the price and the marginal \cost.
B. The opportunity \cost is the difference between the price and the average \cost.
Correct Answer C. The opportunity \cost is the difference between the marginal revenue and the marginal \cost.
D. The opportunity \cost is the difference between the average revenue and the average \cost.
Correct Answer
C
Correct Option:
The opportunity \cost is the difference between the marginal revenue and the marginal \cost.

About This Question

This is Post Utme Esut 2022 Economics Question 36. It is one of the objective questions from the 2022 Post Utme Esut Economics examination.

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